Costco's sales resilience is giving Cramer a reason to feel better about the stock
Jim Cramer is feeling better about the wholesaler following its September report
TL;DR
- Costco's September same-store sales increased by 11.4%, with core comparable sales up 7.6% excluding gas and currency.
- Growth accelerated from August, showing strength independent of gasoline sales.
- Costco's membership and bulk-buying models allow for lower prices, which is attractive to consumers amid inflation.
- Analysts from UBS noted Costco's value proposition in an environment where consumers are seeking it, citing investments in lower prices and a tariff refund.
- UBS also highlighted expanding delivery options through partnerships with DoorDash and Uber Eats as a growth driver.
- Wolfe Research acknowledged the strong core U.S. comp growth but suggested it was slightly influenced by the timing of Labor Day Weekend.
- Concerns about slowing membership growth and renewal persist, despite positive sales reports.